Commitments Tool

After your contract(s) are approved and completed in the Client Contracts tool, you can begin setting up your project's commitments. Typically,  you will create commitments when your company is subcontracting out work. 

In Procore, you can create two types of 'commitments': subcontracts and purchase orders.

• Set Up Your Contract Configuration, Dates, Distribution Lists and Settings. Your company's Procore Administrator can work with you to define your project's default contract configuration. This is an important step before you start creating commitments on a project. You can choose the number of variation tiers for your commitments. You can also enable a variety of dates to use on your contracts by default. Settings also include default distribution list settings, your default accounting methods, setting a retention percent (if applicable) and deciding to enable financial markup or payments by default. For details, see Configure Settings: Commitments. 
• Create Your Project's Purchase Orders. In Procore, a Purchase Order (PO) is a documented financial commitment that details the types, quantities and agreed-upon prices for products or services. As part of the procurement process, purchase orders are created by a 'buyer' (for example, a speciality contractor) and issued to a 'seller' (for example, a supplier) to cover the cost of a contract. Once accepted by the 'seller,' a purchase order represents an agreement between the two parties. See Create a Purchase Order. 

   Tip

  In Procore, purchase orders and subcontracts are used exclusively to bill for pre-determined costs recorded in your project's budget. It's important to note that purchase orders are not designed to be used as a running tab. For example, if your company's practice is to create a payment application to pay for your purchase orders as items are delivered, you would want to create a direct cost instead of a purchase order. See Direct Costs Tool. 

• Create Your Project's Subcontracts. A subcontract is a contractual agreement between the contracting company and the subcontractors who perform the scope of work. In Procore, there are two ways to create a subcontract: (1) You can Award a Winning Tender and Convert it into a Subcontract or you can (2) directly Create a Subcontract in the Commitments tool. 
• Create Subcontractor Payment applications and Manage Payment application Contacts. Using the Commitments or Progress Billing tool, you can also Create a Payment Application on Behalf of a Payment Application Contact or you can provide your subcontractor's payment application contacts with the appropriate permissions to access their purchase orders and subcontracts. See Add Payment application Contacts to a Purchase Order or Subcontract Users with 'Admin' permission on the Commitments tool can also use those permissions to manage payment applications with the Progress Billing Tool. 
• Create a Payments Issued Log.  After you start issuing payments on your project, you can create a log to track the payments you've issued. Your budget and budget reports are automatically updated to reflect your entries. See Add Payments Issued. 

To learn what else you can do with the Commitments tool, see Commitments.